Published on 10/12/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $390,000 5.58% contingent income barrier autocalls with memory on indexes
By Kiku Steinfeld
Chicago, Oct. 12 – HSBC USA Inc. priced $390,000 of autocallable contingent income barrier notes with memory coupon due March 31, 2025 linked to the S&P 500 index, Russell 2000 index and Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 5.58%, paid quarterly, if each underlying index closes at or above its 70% coupon barrier on the related quarterly observation date, plus any previously unpaid coupons.
The payout at maturity will be par if the worst performing index ends at or above its 50% barrier value. Otherwise investors will lose 1% for every 1% that the worst performing index declines.
The securities will be called automatically starting on September 27, 2023 if the level of the worst performing index is greater than or equal to its initial level on a quarterly observation date.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes with memory coupon
|
| Underlying indexes: | S&P 500 index, Russell 2000 index and Nasdaq-100 index
|
| Amount: | $390,000
|
| Maturity: | March 31, 2025
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| Coupon: | 5.58%, paid quarterly, if each underlying index closes at or above its 70% coupon barrier on the related quarterly observation date, plus any previously unpaid coupons
|
| Price: | Par
|
| Payout at maturity: | If worst performing index finishes at or above the barrier level par; 1% loss for every 1% that worst performing index declines if it ends below barrier value
|
| Call: | Automatically starting on September 27, 2023 if the level of the worst performing index is greater than or equal to its initial level on a quarterly observation date
|
| Initial levels: | 12,767.05 for Nasdaq-100, 1,734.923 for Russell 2000, 3,970.99 for S&P 500
|
| Coupon barriers: | 8,936.935 for Nasdaq-100, 1,214.4461 for Russell 2000, 2,779.693 for S&P 500, 70% of initial levels
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| Barrier levels: | 6,383.525 for Nasdaq-100, 867.4615 for Russell 2000, 1,985.495 for S&P 500, 50% of initial levels
|
| Pricing date: | March 24, 2023
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| Settlement date: | March 29, 2023
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.25%
|
| Cusip: | 40441X2K5
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